An updated impact assessment on welfare reform, published by the Department for Work and Pensions last Thursday, showed that 40,000 people are expected to lose housing benefit completely due to reductions in payments. Previous estimates published in February 2011 put the figure at 20,000 people.
All 40,000 people affected currently receive partial housing benefit. The bedroom tax, which will penalise working age social tenants in receipt of housing benefit on average £14 a week if they have a spare room, will be higher than the amount of benefit they receive. The penalty is based on a percentage of the total rent on a property, rather than the amount of housing benefit received.
The DWP said the change in the number of people affected was due to ‘updated modelling’.
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